Tuesday, January 22, 2013

Module Costs Not Falling Fast Enough at Yingli Green


Yingli Green Energy Holding (YGE-$2.95) is aggressively looking to achieve cost savings through vertical integration and technological improvements, from lower energy consumption in ingot casting, water recycling, and reduced waste in wafer yields to higher module efficiencies. In third-quarter 2012, the company brought non-silicon costs down to $0.53 per watt, from $0.66 per watt last year.
Driven by industry overcapacity throughout the capacity chain, the downstream decline in the ASP of crystalline-based modules has been more dramatic, falling more than 50% in the last 12-months to just $0.60 per watt by December 2012, according to market research firm ENF. Ergo, capacity expansion and improvements in operational efficiency haven’t helped margins at Yingli.
Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

No comments: